In good news for first-time buyers, the Scottish Government’s popular shared equity scheme, the First Homes Fund, is set to return by the end of June 2026.
The fund, previously launched in 2019, is an interest-free contribution towards a deposit for first-time buyers in Scotland.
Our Head of Conveyancing, Shawn Wood, shares everything you need to know about the Government scheme below!
The First Homes Fund is a shared equity scheme funded by the Scottish Government to assist 50,000 Scottish first-time buyers with getting on the property ladder. The scheme will be open to applications from first-time buyers in Scotland, providing up to £10,000 towards a property deposit. This is the first time in four years that the fund has been reintroduced following the previous schemes’ closure in 2022.
A buyer using the scheme to purchase their first home will own the title and deeds in full, with the Government owning an equity stake. For example, if the Government provides 10% of the total purchase fee, then they will hold a 10% equity share in the property.
You won’t have to repay the funding in monthly instalments. If you choose to sell your property down the line, the Government will receive a percentage share of the sale price in return.
The First homes Fund will be open to first-time buyers in Scotland who are purchasing a property using a mortgage. If you have never owned a property in Scotland but have previously bought property in another part of the world, you will not be eligible for the scheme.
Only those first-time buyers looking to buy property with a maximum purchase price of £300,000 can apply; if you are offering on a property over this price, you won’t be considered.
Applications for the First Home Fund will be open by the end of June. While we wait for an official date to be announced, we suggest getting in touch with an expert first-time buyer solicitor so that you can focus on applying for the fund as soon as it opens.
Watermans first-time buyer solicitors can help to simplify your house-buying process by
The First Homes Fund is intended to be used in conjunction with your deposit. Mortgage lenders will require a minimum deposit to qualify for a mortgage, as well as proof that you will be able to afford monthly repayments. If you don’t meet these criteria, the fund cannot be used in place of a full deposit.
Applications for the First Homes Fund are due to open by the end of June, with further guidance on the process and requirements expected to be announced soon on the Scottish Government website.
Get in touch with one of our expert first-time buyer solicitors using the form below, or by calling us on 0131 555 7055, to find out more now.
"For many first-time buyers, the challenge isn't paying a mortgage - it's saving a deposit. The First Homes Fund tackles that problem head-on. At a time when rising living costs and high house prices have made it harder than ever to get on the property ladder, this support could be the difference between waiting years to buy and becoming a homeowner today."
"The First Home Fund is a practical, targeted measure that will help more people take that crucial first step into home ownership. We would encourage first-time buyers to contact us to find out more without any hesitation. The First Homes Fund won't last forever and we would expect there to be a surge in market activity over the summer."
Everything we do at Watermans is about getting you the resolution you need and making that process straightforward. Start the process by sending us your details below or calling us on 0131 555 7055
“My clients would describe me as being approachable, down to earth and easy to get on with. This allows me to build relationships with my clients and provide straightforward legal advice without all the jargon.”
Shawn Wood, Head of Conveyancing
